The Nigerian Education Loan Fund (NELFUND) has dismissed as fake a viral report claiming that Nigerian students who fail to repay their education loans after graduation will face life imprisonment.
NELFUND described the claim as false and misleading in a statement shared on its verified social media account on Sunday, September 6, 2026. The agency also published an image of the purported newspaper front page circulating online and marked it prominently as “FAKE.”
The fabricated publication reportedly claimed that President Bola Tinubu had approved life imprisonment for students who defaulted on their loans after graduation.
“There’s no life jail term for students who fail to repay loans. The speculation is fake,” NELFUND said.
The clarification is important as misinformation about the student loan scheme could discourage eligible Nigerians from applying for financial assistance or create unnecessary fear among existing beneficiaries.
NELFUND said the viral claim did not originate from the government and urged students and members of the public to rely on its official communication channels for accurate information. The agency has previously debunked fabricated notices concerning the student loan programme.
Under the current repayment framework, beneficiaries do not automatically begin repayment immediately after graduation. Repayment becomes due two years after completing the National Youth Service Corps programme, or receiving an exemption, and when the beneficiary is gainfully employed. For salaried workers, repayment is capped at 10 per cent of income, while self-employed beneficiaries are expected to remit a similar portion of their earnings.
